Use of Nonprofit HOA dues for private property

We are an Indiana nonprofit HOA for townhouses that are individually owned and maintained by the owner - siding, roofing . . . The HOA governs common areas and any changes individuals want to make to their exteriors. The board is proposing to take HOA funds to replace outside lights on the townhouses (3 per townhouse). Many do not need replaced, but the board wants a different light style at a cost of 40K. As a nonprofit, can an HOA use funds to improve individual property? Some homeowners are refusing to allow the contractors to take down lights they own on their private property. There was no vote recorded in the minutes, but some homeowners do want the lights changed because they have more sun exposure and the their lights have faded (they are no longer available). I'm not sure why the homeowner shouldn't pay for their own lights. Then as lights need replace, the one approved by the board is the choice. All other projects on private property have been at homeowners' expense and the homeowner had a choice to improve their property or maintain what they currently purchased. Any thoughts on this issue is greatly appreciated.

Tammy,

To be honest, the Board can likely do what the membership allows.

As for if it's proper to use Association funds for this expenditure, you will need to check your governing documents. Typically, the CC&Rs specify what the assessments are to be used for. Normally, it is only for common areas and common amenities.

Expecting that your against this action, my suggestion would be to contact the board in writing. Be polite and tell them that you are concerned that the Board, by funding this project, is exceeding their authority as authorized by the Declaration of Covenants and that if your interpretation of the governing documents [cite the section] is correct that their action can open the Association up to potential litigation. Then ask them to seek a legal opinion and to please cite the section of the governing documents that they believe authorizes them to utilize assessments in this manner.

Additionally, explain that you are concerned of the potential liability issues the Board would be opening the Association to if something happened and the work or an electrical fire caused damage to someones property. You may also want to explain that you are concerned of the liability incurred if a contractor hired by the Association trespassed onto someones' property and performed said work without their permission.

Again, be polite in the letter. Send it via certified mail to the President of the Board with a copy to all Board members (sent via first class mail) and to the registered agent of the Association.